COST ACCOUNTING 221 



Use of Cost Data. What is done with the cost data after 

 collection ? It is used to the best advantage in the accounts. 

 All data should be collected with a definite end in view. 

 They shmdd not be collected merely to bring a lot of fig- 

 ures together. 



The results obtained from the collection of a mass of 

 data should be correlated as much as possible with some 

 other results. For example, the results showing the cost 

 of man labor and horse labor in the production of corn 

 should be correlated brought into juxtaposition with fig- 

 ures showing other costs connected with corn; and also 

 with income from corn. This is effected by bringing all 

 the information concerning the costs of corn under the 

 account with corn in the ledger. Any information, then, 

 concerning the cost of, or income from, corn can be found 

 by referring to the ledger account bearing that title. It is 

 sometimes necessary to refer back to the account with the 

 field * in which it was produced, as field No. 1, No. 2 or 

 No. 3, in order to get certain details of the cost. 



In order to get the figures from the cost records into the 

 proper places in the ledger, an entry is made in the cash 

 journal expressing the proper debits and credits to the 

 accounts affected. These are then posted to the proper ac- 

 counts. For example, if the cost records show that corn 

 valued at $100 has been fed to the hogs during a given 

 period of time, an entry should be made in the cash jour- 

 nal debiting the Swine account and crediting Corn ac- 

 count. This entry is then posted to the ledger according 

 to the ordinary methods of posting. Such an entry in the 

 cash journal may be dispensed with, if the cost data are 

 tabulated in permanent books that can be used as post- 

 ing mediums. 



This is one of the most essential features of the double 

 entry system of farm accounting. There LS a centraliza-, 



*See "Operation of Field Accounts." 



